U.S. supermajors Exxon Mobil and Chevron closed the door on 2023 with mixed earnings and revenue reports Friday. For the 2024 year, both companies forecast nearly flat oil production compared to 2023 levels. CVX stock and XOM shares advanced early.
Chevron reported Q4 EPS of $3.45 with revenue totaling $47.18 billion Friday morning. Analysts had predicted earnings of $3.19 per share and sales of $50.92 billion. For the full year, Chevron earnings fell 30% to $13.13 per share with revenue declining 15% to $200.95 billion. Chevron also increased its quarterly dividend by 8% to $1.63, from $1.51.
Meanwhile, Exxon Mobil fourth-quarter earnings came in at $2.48 per share with revenue of $84.34 billion. Wall Street had expected EPS of $2.20 and $90 billion in sales. In 2023, earnings dipped 32% to $9.52 per share with revenue declining 16% to $344.58 billion.
Both Exxon Mobil and Chevron saw profit and revenue declines throughout 2023, as oil and natural gas prices weakened vs. prior-year levels which were driven higher by Russia's invasion of Ukraine.
Exxon Mobil stock advanced 0.2% while Chevron shares gained around 2% Friday during market action. CVX is down more than 1% in 2024 while XOM has gained 2.8%.
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Megadeal Updates
Chevron and Exxon Mobil move into 2024 after making megadeal acquisitions in the latter part of 2023. Exxon Mobil significantly expanded its Permian Basin holdings when it paid $60 billion for Pioneer Natural Resources in October.
Chevron quickly followed up with its $53 billion purchase of Hess, bolstering its share of Bakken Shale assets in Montana and North Dakota, as well as an Exxon-led project offshore from Guyana.
What's In Store For Exxon Mobil And Chevron In 2024?
On Friday, both Chevron and Exxon Mobil gave updates on the status of the deals, as the Federal Trade Commission (FTC) has asked for additional information. CVX anticipates its deal with Hess closing "around the middle" of 2024.
Meanwhile, Exxon Mobil announced the acquisition is expected to close in Q2 2024.
Exxon Mobil Stock, Chevron: Oil Production
Crude oil demand appears set to increase in 2024 but at a slower pace, according forecasts by the Energy Information Administration (EIA), the Organization of the Petroleum Exporting Countries (OPEC) and The International Energy Agency (IEA). China, the world's largest oil importer, continues to face post-Covid economic challenges. The country's economic outlook is a key metric for the oil market, according to analysts.
Looking to 2024, Chevron announced Friday it expects production to increase 4%-7% compared to its 3.12 million barrels of oil equivalent per day in 2023. Analysts had been projecting a 14% production increase for Chevron.
Exxon Mobil reported plans for a less-than-2% production increase for average net production of about 3.8 million barrels of oil equivalent per day in 2024, vs. 3.74 million barrels of oil equivalent per day in 2023.
The production guidance from the two U.S. supermajors comes as Saudi Arabia's state oil company, Saudi Aramco, announced earlier this week it would abandon a plan to expand oil production capacity.
Aramco, the world's largest oil exporting company, said Tuesday that it will maintain its current output of 12 million barrels per day. That reversed an earlier plan to increase production to 13 million barrels per day by 2027.
U.S. and international benchmark oil prices sank below $74 and $79 per barrel, respectively, on Friday after trading around three-month highs early in the week amid growing tension in the Middle East.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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